UMC recieves favourable ruling in Chinese patent dispute

Pat Wise |Saturday, July 07, 2018

Micron shares plummet after China bans chip sales

The injunction prevents Micron from selling 26 semiconductor products, including DRAM and Nano flash memory chips, which are building blocks for mobile phones, computers, and other IT (information technology) devices, as well as solid-state computer hard drives (SSD), according to a July 3 online announcement on UMC's website.

Then, UMC counterpunched. In January this year, UMC filed a lawsuit against Micron in the court of Fuzhou City, China, demanding 270 million yuan (US$40.5 million) in compensation, claiming that Micron infringed upon its DRAM technology patents. When violations occur, UMC stands ready pursue patent infringement litigation in order to obtain judgment and remedies to protect the intellectual property rights of the company.

Micron's head of legal affairs, Joel Poppen, said the company was "disappointed" with the injunction, saying Micron hadn't had a chance to present its defense in court. The ban applies to its subsidiaries Micron Semiconductor (Xi'an) Co Ltd and Micron Semiconductor (Shanghai) Co Ltd.

Micron makes big business from selling its products to China.

The court drama started in December when Micron filed a lawsuit in California under the Defend Trade Secrets Act.

DRAM Prices Might Go Up Again As MIcron Plant Has Issues - 07/06/2017 08:16 AMOne out of the two Micron's DRAM plants is out of production after they had to close it down after a nitrogen gas dispensing system.

However, sources close to the company say it is now drafting a response to the ruling by the Fuzhou Intermediate People's Court of the People's Republic of China.

The court, in the southeastern city of Fuzhou, didn't respond to requests for comment.

The ZTE crisis has intensified China's desire to slash its dependence on foreign-made computer chips. The country is the world's largest market for chips but China's homegrown suppliers are dwarfed by American rivals. If the ban is enacted, Micron's competitors, including Samsung, SK Hynix, WDC, Intel, Toshiba and the new entrant YMTC would be benefited. Only China has not yet cleared it on antitrust grounds. "So a disruption in the supply of DRAMs from Korean companies to Chinese buyers can give rise to damages to Chinese manufacturers of end-use products", the official said.

The Court has not yet indicated when a final ruling on the case can be expected, nor for how long the injunction on sales is valid. Some experts say that the preliminary ruling on this day may be China's plan to secure cards for future negotiations.

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